Is Arch Capital Group (ACGL) Offering Value After Strong Multi‑Year Share Price Gains

Simply Wall St.01-10

If you are wondering whether Arch Capital Group at around US$95 a share offers good value today, the key question is how its current price lines up with what the business may be worth. The stock has ...

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The stock has ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/insurance/nasdaq-acgl/arch-capital-group/news/is-arch-capital-group-acgl-offering-value-after-strong-multi\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is Arch Capital Group (ACGL) Offering Value After Strong Multi‑Year Share Price Gains</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs Arch Capital Group (ACGL) Offering Value After Strong Multi‑Year Share Price Gains\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-01-10 23:23 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/insurance/nasdaq-acgl/arch-capital-group/news/is-arch-capital-group-acgl-offering-value-after-strong-multi><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>If you are wondering whether Arch Capital Group at around US$95 a share offers good value today, the key question is how its current price lines up with what the business may be worth. The stock has ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/insurance/nasdaq-acgl/arch-capital-group/news/is-arch-capital-group-acgl-offering-value-after-strong-multi\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4585","symbol_name":"ETF&股票定投概念","start_time":0,"source_url":"https://simplywall.st/stocks/us/insurance/nasdaq-acgl/arch-capital-group/news/is-arch-capital-group-acgl-offering-value-after-strong-multi","article_id":"2602538284","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/7214000-choice2-main-header/1585186746158"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/insurance/nasdaq-acgl/arch-capital-group/news/is-arch-capital-group-acgl-offering-value-after-strong-multi","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2602538284","pubTimestamp":1768058631,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"If you are wondering whether Arch Capital Group at around US$95 a share offers good value today, the key question is how its current price lines up with what the business may be worth.\nThe stock has posted returns of 1.4% over the last 7 days, 3.7% over the last 30 days, 1.4% year to date, 5.6% over 1 year, 57.0% over 3 years and 188.5% over 5 years, which has put valuation firmly on many investors' radar.\nRecent attention on Arch Capital Group has been supported by ongoing coverage of the...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4585":"ETF&股票定投概念","ACGL":"艾奇资本","LU1363072403.SGD":"Fidelity Global Financial Services A-ACC-SGD","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","LU1169589451.USD":"ALLSPRING (LUX)  U.S. SELECT EQUITY \"A\" (USD) ACC","LU1169590202.USD":"ALLSPRING (LUX)  U.S. SELECT EQUITY \"I\" (USD) ACC","BK4107":"财产与意外伤害保险","BK4588":"碎股","LU0971096721.USD":"富达环球金融服务 A"},"translate_title":"Arch Capital Group(ACGL)在股价多年强劲上涨后是否具有价值","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ACGL":1.5},"content_text":"If you are wondering whether Arch Capital Group at around US$95 a share offers good value today, the key question is how its current price lines up with what the business may be worth. The stock has posted returns of 1.4% over the last 7 days, 3.7% over the last 30 days, 1.4% year to date, 5.6% over 1 year, 57.0% over 3 years and 188.5% over 5 years, which has put valuation firmly on many investors' radar. Recent attention on Arch Capital Group has been supported by ongoing coverage of the company as a major insurance name in the US market. This has kept it in focus for investors watching the sector. This article was prompted to provide evergreen context so you can interpret the share price moves without relying solely on short term headlines. On Simply Wall St's framework, Arch Capital Group currently has a valuation score of 5/6, with 1 point awarded for each of the 6 checks where the stock appears undervalued. Next we will look at how different valuation methods arrive at that view and why there may be an even better way to judge value by the end of this article.  Arch Capital Group delivered 5.6% returns over the last year. See how this stacks up to the rest of the Insurance industry. AdvertisementApproach 1: Arch Capital Group Excess Returns Analysis The Excess Returns model looks at how much profit a company is expected to earn over and above the return that investors typically require on its equity, then converts those surplus earnings into an intrinsic value per share. For Arch Capital Group, the model starts with a Book Value of $62.58 per share and a Stable EPS estimate of $10.74 per share, based on weighted future Return on Equity estimates from 6 analysts. The Average Return on Equity used is 13.74%, compared with a Cost of Equity of $5.44 per share. That gap translates to an Excess Return of $5.30 per share, which is the core driver of value in this framework. The model also uses a Stable Book Value of $78.19 per share, sourced from weighted future Book Value estimates from 8 analysts. Putting these inputs together, Simply Wall St’s Excess Returns approach arrives at an intrinsic value of about $221.63 per share. Versus a share price around $95, the implied discount of 57.1% suggests Arch Capital Group screens as materially undervalued on this method. Result: UNDERVALUED Our Excess Returns analysis suggests Arch Capital Group is undervalued by 57.1%. Track this in your watchlist or portfolio, or discover 879 more undervalued stocks based on cash flows. ACGL Discounted Cash Flow as at Jan 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Arch Capital Group. Approach 2: Arch Capital Group Price vs Earnings For a profitable company like Arch Capital Group, the P/E ratio is a useful way to think about value because it ties the share price directly to the earnings that belong to you as a shareholder. In general, higher growth expectations and lower perceived risk can support a higher P/E, while slower growth and higher risk usually point to a lower, more cautious “normal” P/E range. Arch Capital Group currently trades on a P/E of 8.47x. That sits below the Insurance industry average P/E of 12.88x and the peer group average of 12.80x, which may catch your eye if you are comparing across the sector. Simply Wall St also calculates a proprietary “Fair Ratio” of 12.27x for Arch Capital Group. This is the P/E level that would typically be expected given factors such as its earnings growth profile, industry, profit margins, market cap and risk characteristics. This Fair Ratio can be more informative than a straight comparison with peers or the industry because it adjusts for those company specific drivers rather than assuming one size fits all. With the actual P/E at 8.47x versus a Fair Ratio of 12.27x, Arch Capital Group screens as undervalued on this approach. Result: UNDERVALUED NasdaqGS:ACGL P/E Ratio as at Jan 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1444 companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your Arch Capital Group Narrative Earlier we mentioned that there is an even better way to understand valuation. Narratives on Simply Wall St let you attach your own story about Arch Capital Group to the numbers by linking your view of its future revenue, earnings and margins to a forecast, comparing the resulting fair value with the current share price, and then updating that view automatically when new information like news or earnings arrives. This is why some investors in the Community might build a Narrative that supports a fair value around US$125 a share, while others lean closer to US$93, reflecting different expectations but using the same easy, accessible tool. Do you think there's more to the story for Arch Capital Group? Head over to our Community to see what others are saying! NasdaqGS:ACGL 1-Year Stock Price Chart  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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